Imagine you run a company that manufactures widgets. Last week, you had $ 1,000 in total costs, and revenue of $1,000. If you want to hire 10 more workers at $110 a day, what would happen to your fixed cost, your variable cost , and your total cost ? Write a paragraph explaining your reasoning.

With the hiring of more workers, the variable cost will increase but the fixed cost will remain the same because labor is not a fixed asset. So as a result of this the total cost will also increase.

Explanation:

In Economics, fixed costs, backhanded expenses or overheads are operational expense that are not reliant on production of the products or administrations delivered by the business. They will in general be time-related, for example, intrigue or leases being paid every month, and are regularly alluded to as overhead expenses.

Variable costs on the other hand are the costs which do not remain fixed. They vary or change with respect to the change in the production of the goods in the organisation.